Performance Bonds Insurance

As a developer, selecting the right contractor for your project can be a time-consuming, and sometimes difficult, task. You may have a recommendation from your architect or your client. You may have gone through an exhaustive tendering process. Or you may decide to use a construction company you’ve worked with before, on a similar project. However you choose your building partner, you’re putting your trust in them to fulfill your contract. You’re relying on them to honour their agreement to deliver to your timetable and your budget. And in an ideal world, this is exactly what happens.

But, what if your chosen contractor goes out of business during construction? What happens to the financial investment you’ve already made in them? And what happens to the future of your property development? A Performance Bond for Construction is an insurance policy that will protect you financially from the repercussions of your builder being unable to fulfill the contract.

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GETTING THE RIGHT PERFORMANCE BONDS INSURANCE

How does Performance Bonds Insurance help you?

The thought of the being let down by the builder you’ve painstakingly selected, and begun a professional relationship with, isn’t comfortable one. No developer wants to have to start again with a new contractor. But at least a Performance Bond will lessen the financial impact on you. The bond is usually put in place as part of the tendering process, or as soon as the contractor is commissioned, to ensure you’re financially protected from the outset. There are also numerous other bonds that may be relevant to your project. Which is why we like to discuss your development with you at the earliest opportunity, to make sure you’re safeguarded from the outset.

Examples of where Performance Bonds Insurance helps

For instance, if you pay out for materials in advance of receiving them, an Advanced or Stage Payment Bond will reimburse you if the goods fail to be delivered. If your construction involves road or sewer work or modification, the Local Authority may require you to obtain a Road and Sewer Bond. This guarantees that you’ll complete the specified work, in line with their specifications. Another example is, if you’re importing material from outside the UK, you would normally have to pay Duty and VAT at the UK border, which will impact on your cash flow. However, a Duty Deferment or Custom Bond will allow you to defer payment for an agreed period.

Compensation for Low Performance

The policy entitles you to financial compensation and means that you’re still able to commission another builder to complete your project, with the minimum of monetary exposure. At Construction Insure, we know how to get you the right bond for your property development. We’ve been negotiating insurance that’s designed to protect property developers like you, for forty years, so we know how to safeguard you against the issues that can threaten your build and your livelihood.

How do you get the right advice?

We can advise you on the right bonds for your build, which may also include Rent Bonds, Bid Bonds, Maintenance Bonds, Retention Bonds and Construction Guarantee Bonds.We have the knowledge and experience to give you advice about any bonds you may need, as well as all aspects of your property developer’s insurance cover. Please call us on 020 3958 6868 so we can discuss your requirement with you. Then we can get you the cover that’s right for you.

WHAT OUR CLIENTS SAY

" Comparing like with like plus some lower excesses you have managed to save me in excess of £1500 or approximately 15% on my previous insurer. "

- Hew Stevenson, March 2018

" We found you to be more thorough, efficient and reasonably priced than our existing insurer. We would not hesitate in recommending you to anyone."